Tuesday, October 28, 2014

One Commodity in Modern Mexico



            Gabriela Soto Laveaga combines two narratives in Jungle Laboratories: the first describes the development of synthetic steroids essential to contraception and cortisone; the second narrative is about the impact of pharmaceutical production on Mexican peasants, campesinos.  Campesinos provided pharmaceutical companies with an inexpensive raw material, barbasco, which contains diosgenin, the chemical basis of progesterone.  Initially a Mexican company, Syntex, discovered the chemical process that turned diosgenin into progesterone, but immediately following this discovery international pharmaceutical companies came to Mexico to purchase and process barbasco to create a variety of medical products.  The history of the campesinos who located and dug up barbasco and brought it to collection points where it could be sold is a history of the social structure of rural Mexico, the changes to the countryside that resulted from Mexico’s efforts to industrialize in the twentieth century, and most importantly from Laveaga’s perspective, how involvement in the production of chemical products changed the Mexican peasants who were a first link in a vast commodity chain.
            The history of barbasco as a commodity shares features with several books we have read previously.  Initially Mexico appeared to have a monopoly on a valuable commodity.  Campesinos searched for and dug up barbasco because they saw this activity as their best opportunity to provide for themselves and their families.  As Laveaga demonstrates, certain rural Mexicans derived a relatively high standard of living through the barbasco trade.  These were the people who recognized the value of the yam to pharmaceutical companies, who had the organizational skills and capital, trucks, to collect the yams from large numbers of workers and take the yams to the initial processing centers.  At processing centers knowledgeable Mexicans managed the workers to follow a production process that created diosgenin granules which could be shipped to pharmaceutical laboratories where further processes turned the diosgenin into medicinal products.  The rural Mexican people who most benefitted from barbasco were the middlemen whose activities came between the barbasco gatherers and the pharmaceutical companies.  When the government began a program of organizing the campesinos who found barbasco, they attempted to educate the campesinos and eliminate the influence and power of the middlemen.  The government’s efforts at social reorganization were only partially successful.  Ultimately, as we have seen with other commodities, new sources for diosgenin were discovered.  Soy grown in multiple sites, especially China, became an important source of diosgenin.  Corporations continually seek new ways to thwart monopolies of supply, lower production costs, and enter lucrative markets in an attempt to earn profit.  Beet sugar provided the French economy with a way to overcome the financial loss of its valuable sugar-colony, Haiti.
            The political history of Mexico during the time of barbasco activity is naturally intertwined with Mexico’s involvement in industrial pharmacology.  One strand of Mexican politics attempted to provide Mexican peasants with the benefits of the revolution through land distribution and nationalization of industry.  The first president to attempt these goals was Lázaro Cárdenas, 1934-1940.  As Laveaga explains, Luis Echeverría, 1970-1976, adopted a populist program not unlike that of Cárdenas.  During Echeverría’s presidency Mexican students and the Mexican media became aware of the barbasqueros, the campesinos who gathered barbasco.  The low price the pharmaceutical companies paid them for barbasco was decried in the press as an example of foreign imperialism.  The barbasqueros became a symbol for Mexican nationalism and for the exploitation of Mexico, especially at the hands of the United States.  Echeverría utilized this popular sentiment to create a parastatal industry, Proquivemex, one that would regulate the collection and sale of barbasco and establish a Mexican corporation that would produce inexpensive medical products to sell within Mexico.  Additionally his government established a union of barbasco pickers, UNPRB, to enhance the livelihood of these people and to secure their support for his administration.  The key to improving the lot of barbasqueros was to eliminate the middlemen who reaped most of the gain in the process of getting diosgenin to the pharmaceutical companies.
            The second main strand of Mexican political history, and of course there are more than merely two strands, is the major effort of the Mexican government to promote industrialization.  Laveaga mentions several major infrastructure projects, dams in southern Mexico which provided electricity for Mexico City and other urban areas.  These dams displaced large numbers of campesinos.  The state also promoted export-related agriculture and cattle ranching in an effort to enhance the economy.  These events limited the job options for the very people who eventually became the barbasqueros and help to explain why campesinos searched for and dug up barbasco.  When the barbasco trade was reduced because of competition from outside Mexico and reduced barbasco supplies within Mexico, the barbasqueros had few job alternatives.
            Echeverria’s successors in the 1980s faced a very different economic and political environment.  The promotion of infrastructure, development of industry, and grants to the poor were financed by borrowing.  Mexico announced in 1982 that it would not be able to service its debt.  This was the beginning of the Latin American debt crisis that forced foreign commercial banks, many in the United States, to refinance loans.  It was the time when the IMF stepped in to assist debtor nations and impose strict financial controls as a condition of receiving loan extensions and new funds.  In 1989 Proquivemex was dissolved although it lived under the direction of the members of the UNPRB for a few years with minimal success.  The populist programs of Echeverría were subordinated to a pro-business growth strategy meant to overcome Mexico’s international financial problems.
            Laveaga provides the reader with a view of what the life of barbasqueros was like, and how increased knowledge of the pharmaceutical industry enhanced the ability of some of these people to participate more effectively in the modern Mexican economy.  She also demonstrates that top-down, state attempts to control the countryside were not able to completely change the dynamics of the social hierarchy that existed there.  Jungle Laboratories contains more embedded history of the country of the commodity’s origin than many we have read. This is a very interesting book with much more of value than is apparent in this essay.

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